Toronto – Uber’s Canadian ride-greeting and food delivery will shift to Canada with a focus on the Netherlands – which could affect the tax bill.
The California-based technology company, San Francisco, said the change in its Canadian operations would take effect July 1 and would be sent to the Uber government to collect sales tax.
This change will not result in new charges for most restaurants, drivers or couriers, but current rates are subject to GST, BST and HST and the company may introduce sales tax for its Eat Pass subscription users.
This change will allow restaurants, drivers and couriers to claim tax credits, and they and other Uber utility users can sign new agreements with Uber’s new Canadian companies.
The company said it was considering moving its Canadian operations to the Netherlands from 2018 and has already taken similar steps in Australia-New Zealand and Europe, the Middle East and Africa.
Uber began considering the move in 2017 after Ontario filed a class action lawsuit against Uber Eats driver David Heller.
Heber believed in recognizing drivers as employees and providing them with the minimum wage, vacation pay and other protections under the Employment Standards Act.
Uber challenged the case because it was incorporated because there was a contractual provision that all disputes should be resolved in the Netherlands.
The case was funded by the Supreme Court of Canada, which ruled in favor of the plaintiffs in 2020.
Uber has changed its dispute resolution rules to allow driving in the province or region, but Samar Belitsky, LLP employment lawyer for Sambru Dumar, said there are still some legal provisions that make drivers suspicious of Uber’s new contracts.
Belitsky, who is part of Samfru Dumarkin LLP, which will pursue class action, sends new contract drivers and asks them to agree not to take any class or class action against Uber – as stated in their previous agreement.
Uber wants drivers to agree to resolve their issues either through an arbitrator or on a face-to-face basis, but provides guidelines for deviating from that rule, Belitsky said.
“Conflict information is at the end … it’s very legal, so for most Uber drivers they don’t even see it,” Belitsky said.
“They do not feel their rights are being violated.”
He recommends that anyone who is asked to sign a new contract read it carefully.
The company, which began warning its users on Wednesday about the changes, has been providing support tax and tax proof to everyone involved.
This Canadian edition report was first published on June 24, 2021.
Tara Deshchamps, The Canadian Press